Is it possible to have a lodger in a self-contained annexe?

Cissi

I sort of already asked this in another thread, but it got a bit lost among my other questions...

So, is it possible to have a lodger in a self-contained annexe (rather than a tenant)? The reason for asking this is that the annexe doesn't have its own council tax band and we believe that it probably doesn't have planning permission to rent out as a separate entity. The lodger in question would be a close friend/relative and would have access to the main house as well, so it may be possible to argue use of a shared living room for example? The annexe does have its own entrance, kitchen and bathroom though...

(We're in the early stages of buying this property and haven't got all the information from the vendor's solicitor yet, just thought I'd do some advance research)

Strapped

So long as there is internal access to the main house, then it's fine. (That internal access can be a locked door of course ). I take it that utilities are shared rather than separate too?

Cissi

Thanks Strapped! Oh shoot, no, there is no internal access to the main house, I take it this means it isn't possible then?

And yes, I believe the utilities are shared.

Strapped

Cissi wrote: »

Thanks Strapped! Oh shoot, no, there is no internal access to the main house, I take it this means it isn't possible then?

And yes, I believe the utilities are shared.

I'm not sure what the situation there would be then, although if the utilities are shared, then I'd assume that it would be considered one property (and therefore a lodger not a tenant) - although you do see ASTs where the utilities are included, so you'd be wise to double check.

Cissi

Ok, thank you.

It isn't as much the contract with the lodger/tenant that I'm concerned about, as the possible breach of planning permission? And we'd obviously prefer not to have to get the annexe given it's own council tax band which I've now learnt could be a risk! Especially as we don't plan to have people living there long term and would certainly not rent it out to strangers. This is a shorter term option which would help out a friend, give us all a lovely chance to live on the same premises for a while (my children would be over the moon as they adore this person) and of course give us some extra cash to help us fix things around the new house etc.

In the more distant future we would only use it for occasional guests, and possibly later on as a granny flat should we need one for a parent. We obviously don't want to get it registered for council tax and end up having to pay this forever when it's mainly empty if we can avoid it. At the same time we will only rent it out now if we can do it all above board (we'd obviously be declaring the income etc).

Thanks again for any input!

Dinah93

This may well require planning permission to rent out regardless of what you call the person you rent it to since it does not seem to be nessisary for the annexe to utilise the facilities of the main house, this would be considered a self contained flat. However because it doesn't have its own council tax or utilities you'd never be able to claim a certificate of lawfulness after 10 years that it was now a flat in its own right by virtue of the time it has been there, because you did not set it up as such. I know that makes it a bit of a quandry, but I would say if you are using that annexe to rent you either need to apply for planning permission for it to be a flat, or knock a door between the annexe and the main house.

Pee

I don't see any problem in using it and having a lodger agreement. The lodger may well be able to claim an AST, but that is not the end of the world - they are a nice person and the worst case scenario you should have them out in six months even if they did claim that. In an ideal world, you should use their bathroom and kitchen whenever convenient to you.

clutton_2

if they are friends go ahead and enjoy their company and the extra income - but do use a proper AST

lincroft1710

As annexe is self contained, it doesn't matter what the status of "paying guest" is, it is liable for its own CT band. However there is no obligation in law for you to voluntarily inform either council or VOA of the existence of this annexe.

I believe you have only recently occupied this property. It may be that the annexe was built as an "extension to main dwelling" by previous owner and has yet to be inspected by VOA for possible band increase. If this is the case then when VOA inspect they will realise there is a second dwelling for CT purposes and band it separately.

Cissi

Not only are we not living there yet, but we're only in the first stages of purchasing this property( haven't exchanged contracts), so it's all very early days and we don't have all the information yet. The annexe is as old as the house though (>100 years) and I believe it was formerly used as staff accomodation (in grander times obviously), so this may impact planning permission etc. I guess we need to wait until we know exactly what the paperwork says before we speculate any further

theartfullodger

The key question is, was the annex built as purpose-built separate of was it a conversion.

If a conversion you are in "Resident Landlord" territory (even if you bought the property after conversion).


As such you can sign whatever tenancy agreement you like (Hint, start with an AST - but statute law decides what the tenaqncy is, not what you sign...) but actually the tenant will be "Occupier with Basic Protection" which means you will not have to prove a ground for possession & can get possession automatically if you fill the forms in right.

Yes, strange but true, and I was surprised as well..

Cheers!

Lodger